> Sales increased to $284.6 million in the 2015 third quarter, growing 12% in original currency, 10% in organic sales or 6% after the effect of currency translation.
> Operating income before one-time items was $22.1 million in the 2015 third quarter, up by 2% from the comparable period a year ago.
> EBITDA before one-time items was $27.1 million in the 2015 third quarter, an increase of 4% compared with $26.1 million in the 2014 period.
> Net income before one-time items attributed to shareholders was $14.1 million in the 2015 third quarter, up by 2% compared with $13.9 million for the year-ago period.
> Diluted earnings per share before one-time items attributed to shareholders were $0.55 for the 2015 third quarter, unchanged from the comparable period a year ago.
> Delta Galil reiterated financial guidance for 2015: full-year sales are expected to be a record $1,080 million-$1,095 million (including the effect of the PJ Salvage acquisition), with organic sales growth of 7%-9% in constant currency. Full-year 2015 diluted EPS is expected to be $1.88- $2.00.
> The Board of Directors declared a dividend of $3.5 million, or $0.139 per share, to be distributed on November 17, 2015. The determining and “ex-dividend” date will be November 4, 2015, per the Tel Aviv Stock Exchange.
> Strong balance sheet was highlighted by $349.9 million in equity and $128 million in cash and equivalents as of September 30, 2015.

> Isaac Dabah, CEO of Delta Galil, stated: “The 2015 third quarter was consistent with our expectations. Sales in the third quarter and the first nine months of 2015 increased at a double digit rate, led by an increase in activewear products.”

Tel Aviv, October 27, 2015 – Delta Galil Industries, Ltd. (DELT/Tel Aviv Stock Exchange, DELTY.PK/OTCQX), the global manufacturer and marketer of branded and private label apparel products for men, women and children, as well as leisurewear and activewear, today reported its financial results for the third quarter ended September 30, 2015.

The Company reported sales of $284.6 million for the third quarter of 2015, up from $267.2 million for the same quarter last year, an increase of 6% after the effect of currency translation, 5% organic growth, and a 12% increase in original currency representing 10% organic growth. Sales in the first nine months of 2015 were $792.9 million, an increase of 5% from $754.5 million in the same period of 2014, equal to 5% organic growth and 11% in constant currency. Sales growth over the past nine months benefitted from Delta Galil’s focus on increasing the diversity of its geographic base and customer mix.

Operating income before one-time items was $22.1 million for third quarter of 2015, up by 2% from $21.7 million in the same quarter of 2014. For the first nine months of 2015, operating income before one-time items was $51.9 million, virtually unchanged from $52.0 million a year earlier, primarily due to currency translation.

Net income before one-time items attributable to shareholders was $14.1 million in the 2015 third quarter, compared to $13.9 million in the same quarter of 2014, a 2% increase. For the first nine months of 2015, net income before one-time items attributable to shareholders was $32.3 million compared to $32.4 million for the same period of 2014.

Management Comment

Isaac Dabah, CEO of Delta Galil, stated: “The 2015 third quarter was consistent with our expectations. Sales in the third quarter and the first nine months of 2015 increased at a double digit rate, led by an increase in activewear products. Growth in sales, in terms of constant currency, was reflected in all of our geographic markets.”

“Looking at the key drivers of our profitable growth this quarter, we saw an increase in sales in Delta USA and in the Global Upper Market segments, while both our Schiesser business in Europe and Delta Israel increased sales in original currency. A rising proportion of our sales now comes from branded products, which has been another of our major strategic initiatives.”

“We have continued to invest in long-term growth initiatives,” Mr. Dabah continued.“Earlier this year, we acquired the PJ Salvage brand, providing an opportunity to expand our presence in sleepwear and loungewear, attract a millennial customer base, and strengthen our position in the upper market. We are also excited about our license agreement with Columbia for men’s and ladies’ underwear, launching in 2016; our new seamless R&D center at Nike HQ in Oregon; and a new factory in Vietnam set to open in the 2016 first half.”

Cash Flow, EBITDA, Net Debt, Equity and Dividend

Operating cash flow was $5.9 million in the third quarter and $10.2 million in the first nine months of 2015. In the respective third quarter and nine month periods of 2014, operating cash flow was $14.8 million and $18.4 million.

EBITDA before one-time items was $27.1 million or 9.5% of sales in the 2015 third quarter, an increase of 4% compared with $26.1 million in the 2014 period. For the first nine months of 2015, EBITDA was $65.8 million or 8.3% of sales, compared to $65.0 million in the same period of 2014, increase of 1%.

Net financial debt as of September 30, 2015 was $123.5 million, compared to $77.3 million as of September 30, 2014 and $64.5 million as of December 31, 2014. The increase in the net financial debt was driven primarily by the PJ Salvage acquisition in the third quarter of 2015.

Equity on September 30, 2015 rose to $349.9 million, compared to $335.6 million a year earlier.

Delta Galil declared a dividend of $3.5 million, or $0.139 per share, to be distributed on November 17, 2015. The determining and “ex-dividend” date will be November 4, 2015, per the Tel Aviv Stock Exchange.

Reiterating Guidance for 2015

The Company today reiterated its 2015 financial guidance, excluding non-recurring items, which is based on current market conditions and current exchange rates of $1.12 per Euro and 3.85NIS per US$, reflecting a strong outlook for sales and profitability.

Full-year 2015 sales are expected to range between $1,080 million-$1,095 million, representing an organic increase of 4%-6% (equivalent to 7% to 9% in constant currency) from 2014 actual sales of $1,031.9 million. The expected sales level includes the contribution from the PJ Salvage brand, acquired in the 2015 third quarter.

Full-year 2015 EBIT is expected to range between $75 million-$79 million, representing an increase of 1%-6% from 2014 actual EBIT of $74.4 million; excluding the exchange rate impact the increase is between 12%-17%.

Full-year 2015 EBITDA is expected to range between $94 million-$99 million, representing an increase of 1%-6% from 2014 actual EBITDA of $93 million; excluding the exchange rate impact the increase is between 10%-15%.

Full-year 2015 net income is expected to range between $48.5 million-$51.5 million, representing an increase of 0%-6% from 2014 actual net income of $48.4 million; excluding the exchange rate impact the increase is between 12%-18%.

Full-year 2015 diluted EPS is expected to range between $1.88-$2.00, representing an increase of 1%-8% from 2014 actual EPS of $1.86; excluding the exchange rate impact the increase is between 13%-19%.

About Delta Galil Industries

Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children. Since its inception in 1975, the Company has continually strived to create products that follow a body-before-fabric philosophy, placing equal emphasis on comfort, aesthetics and quality. Delta Galil develops innovative seamless apparel including bras, shapewear and socks; ladies intimate apparel; extensive lines of underwear for men; kids, activewear, sleepwear, and leisurewear. For more information, visit www.deltagalil.com.

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.